By Henry Brown
With limited resources available, you’ve got to do something to make sure you have the capital to keep your small business afloat. Thankfully, finding funding isn’t impossible if you know where to look, and you understand how to play the game. If anything, the hardest part is figuring out what to do with the money once it lands in your bank account. Too many entrepreneurs don’t have a plan, and they squander the cash as a result. To avoid becoming another depressing statistic, it’s better to follow the path set by people who are still thriving today.
These are the things they do when they secure funding.
Hire a part-time chief financial officer
A chief financial officer is a person you would expect to find in a multi-billion-dollar corporation. Apple and Amazon have them because they are integral to their budget. Without a CFO, it’s difficult to track the money, which makes it challenging to understand your incomings and outgoings and stick to a budget. The good news is that part time CFOs don’t cost a fortune, and nor are they tough to find. The thing to remember is that a money expert will save you more in the short and long-term than you’ll spend on their wages.
Avoid unplanned spending sprees
Do you feel an urge to spend money when you see it in your account, waiting to be splashed? If you do, it won’t be easy to avoid making excuses for things you don’t require. Office furniture will be at the top of the list, along with fancy workplace equipment and overpriced business trips. Swerving these indulgences will leave more funding to spend on essential expenses. Of course, it’s easier to say than it is to do. Therefore, if you’re unsure, you can write down the reasons why you need an item or service, and why you don’t. If the pros outweigh the cons, you can proceed.
Invest in a skeleton crew
Your startup will require employees as they are the foundation of any business’ success. Still, there’s no reason to go overboard and recruit as many people as you can fit in the office while adhering to health and safety regulations! Instead, you need a skeleton crew filled with essential team members. Everyone else you can hire on a temporary or short-term agreement as and when you need them. This is a fantastic way to recoup your investment and cut expenses.
Have a backup
Funding is so tough to find that it can feel as if it was meant to be when you hear you’re one of the lucky few. In reality, the stars aren’t aligned. Therefore, it’s imperative to create a backup plan in case your initial strategy fails. Entrepreneurs who believe they can’t do any wrong miss this step, and then they have nowhere to turn when things go south. At least with a safety net, you won’t lose all your money and hard work.
This is what successful businessmen and women do with funding. What will you do?
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Henry Brown is an online marketing executive. When he isn’t talking shop, he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.
